AHA endorses Mutual of Omaha Companies for new structured settlement product; alliance offers a unique third-party guarantee.

CHICAGO--(HealthWire)--June 10, 1996--The American Hospital Association (AHA) and the Mutual of Omaha Companies have teamed up to help health care providers take the lead in the negotiation of claims settlements.

Chicago-based AHA Insurance Resource Inc. (AHA-IRI), the insurance and financial services subsidiary of the AHA, today announced that it has awarded the exclusive AHA endorsement to United of Omaha Life Insurance Company (a wholly owned subsidiary of Mutual of Omaha Insurance Company) for its new third-party guaranteed structured settlement annuity product.

A structured settlement annuity is a periodic method of payment used to settle a physical or personal injury claim. Internal Revenue Codes, Section 104(A)(2) provides that such an obligation may be funded by the purchase of an annuity contract from a reputable and financially sound insurance company.

United of Omaha's guaranteed structured settlement annuity offers health care providers several advantages:

-- Payments (built upon initial premium) are designed to be tax

free (under Government Tax Law)

-- Payments are guaranteed by United of Omaha and AXA RE

-- Dissipation of the settlement fund is controlled

-- Resolution of the case can often occur prior to trial

-- Needs of the claimant are met, while money is saved for the

defendant company (compared with a lump sum settlement)

``We believe the United of Omaha's guaranteed structured settlement annuity is the best for our country's health care providers because it affords them and their attorneys more control over settlement options,'' said Dixie Arthur, president of AHA-IRI. ``This program offers a third party guarantee not available through other life insurance carriers. It also provides professional settlement consultation services, participation in settlement negotiations, and, ultimately, it helps reduce the cost of case settlement.''

``We are extremely pleased to have AHA as our partners,'' said Tom Sawicz, executive vice president, Sales and Marketing Operation for United of Omaha. ``The AHA endorsement enhances the value of our structured settlement product and reinforces our strong credibility among health care providers. In addition, it gives the Mutual of Omaha Companies another opportunity to help consumers meet their financial needs. Consumers, health care providers, the AHA and the Mutual of Omaha Companies will all benefit from this relationship.''

The Mutual of Omaha Companies provide protection through a comprehensive line of insurance and financial service, including health, life and disability products, annuities, structured settlements and mutual funds. Mutual of Omaha is one of the largest providers of individual health and accident insurance in the United States.

With more than 60 years of experience in providing money management services, United of Omaha has consistently received high ratings from industry analysts for financial strength, including A.M. Best, Duff & Phelps, Moody's and Standard & Poor's. United of Omaha currently has total assets of more than $7 billion under management and has more than $80 billion of life insurance in force. United of Omaha continues to offer its standard structured settlement product for the broader marketplace.

A subsidiary of the American Hospital Association, AHA Insurance Resource Inc., designs and markets insurance and financial products and services to member hospitals and other health care providers. In addition, AHA-IRI provides value-added support services or all AHA endorsed products. AHA-IRI also has an exclusive sponsorship of the Healthcare Financial Management Association, which includes more than 37,000 financial executives in hospitals and other health care organizations. More than 5,000 institutions, 600 associates and 40,000 personal members make up the AHA, the organization that represents and serves all type of hospitals, health care networks and their patients and communities.

CONTACT: AHA-IRI

Anthony J. Burke, 312/266-2601

or

United of Omaha

Christine M. Buggy, 402/351-5844